In response to a request from the President of the Chamber of Deputies, Arthur Lira, the Federal Government is planning to change the way of regulating the sports betting market in Brazil. According to information from G1, the sports betting PM will be converted into a Bill and will follow an urgent regime. Lira is negotiating this change with the Minister of Institutional Relations, Alexandre Padilha, and with government party leaders in the National Congress.
This is not the first time that the President of the Chamber acts in this direction. In April, in response to a request from Lira, the government opted to give up the Carf provisional measure, one of the main sources of revenue provided by the economic team, and forwarded the text to Congress as a Bill.
The transformation of the sports betting PM into a Bill has significant implications. While an PM has immediate application and needs to be approved by Congress within a period of four months to have permanent effect, a Bill with an urgency regime will lock the voting agenda after 45 days and will have its processing initiated by the Chamber of Deputies. To be approved, the project will require an absolute majority, that is, the support of 257 deputies.
The text of the PM for sports betting establishes that only qualified companies will be able to receive bets related to official sporting events, organized by federations, leagues and confederations. Unqualified companies will be prohibited from carrying out any type of advertising and will incur illegal practices.
The taxation of companies in the sector is one of the most relevant points of this theme. As provided in the text, companies will be taxed at 16% on Gross Gaming Revenue (GGR), that is, on revenue obtained from all games played, discounting prizes paid to players. In addition, a 30% tax will be applied on the prize received by the players, with an exemption of BRL 2,112.00.
The collection from fees and taxes will be allocated to priority areas, such as public safety, basic education, sports clubs and social actions. There will be a strategic distribution to benefit different sectors of society.
According to PM guidelines, 2.55% of the collection will be allocated to the National Public Security Fund, with the aim of combating match fixing, money laundering and other criminal activities related to betting. Basic education will receive 0.82% of the resources, while sports clubs will receive 1.63%. In addition, 10% will go to social security and 1% to the Ministry of Sports.
The transformation of the PM into a bill is seen as a strategic measure to continue the process of regulating sports betting in Brazil. This change will allow for a more in-depth debate in the National Congress and the possibility of adjustments and contributions from parliamentarians. In this way, it is expected that the final legislation will be solid and adequate to the needs of the country.
Therefore, the expectation is that the sports betting PM will be converted into a bill later this year, following the legislative process and seeking the necessary approval for the effective regulation of this market. The transformation into a bill with an urgent regime represents an important step in this process, indicating the importance and urgency of this matter for the government and the National Congress.
